Trading analysis

EUR/USD (a 4-hour chart)

General Overview

The Germany labor market data were published in the European session. We expect a reducing the number of unemployed in October which will support the euro.

A number of negative data from the United States published in the last month shows that monetary policy will remain unchanged. In addition, due to the fiscal crisis in the States, a lot of statistics have not been published, which is another significant disadvantage for the Fed. And it will certainly put pressure on the dollar.

The bulls dominate on the market. The pair is in a bullish trend. Chinkou Span is above the price, and the price is fixed above the Ichimoku cloud, the buy signal is strong and confirmed. Tenkan-Sen and Kijun-sen are horizontal. The Cloud is growing.

The upward movement will remain until the Kijun-sen is located below the price.

The current resistance level is at 1.3755where the corrective movement is currently going on.

The rebound from the resistance 1.3755 will allow the price to go up two levels of support located on marks 1.3700 and 1.3660. The breakthrough of the last level will open the way to the rising trend line 1.3620.

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